Kakao, Naver face unfamiliar test as union voices grow

Kakao's labor union Crew Union holds a protest to oppose Kakao Mobility's sell-off to a private equity firm in Yeouido, Seoul, April 17. Yonhap

Labor unions' growing voices are emerging as a test for the management of tech giants Naver and Kakao, as the IT sector, where high employee turnover has long hindered unionization, becomes increasingly unionized with workers speaking out over long-standing grievances.

Kakao’s labor union Crew Union will launch its first-ever full-day strike on June 25, following a breakdown in collective bargaining negotiations with its subsidiary Kakao Mobility.

The strike began with a two-hour walkout last Wednesday in solidarity with Naver’s labor union, and is set to intensify with a four-hour strike and a large-scale rally this Wednesday, leading up to the full-day strike.

The labor conflict was triggered by the company’s recent shift in business strategy to streamline its sprawling portfolio, raising the possibility that it will divest some of its key subsidiaries, including Daum and Kakao Mobility. As speculations grew over management exploring options to sell off Kakao Mobility to private equity, workers have expressed condemnation and concerns over their job security and the future direction of the company.

“It is clear that public interest will be compromised if platform services containing sensitive user information are operated by private equity funds, so policy measures to control stake sales to them must be urgently established,” the union said in a statement in April, expressing disapproval of management’s possible decision.

The conflict intensified the collective bargaining negotiations Kakao and its labor union began earlier this year for both Kakao Mobility and Kakao VX. Talks broke down, prompting the union to declare a strike.

“Kakao Mobility was able to grow thanks to the dedication and hard work of its workers," the union said. “But despite the company's strong performance, management has unilaterally proposed a low-level compensation plan, disregarding workers' legitimate rights and contributions."

A union worker holds a sign opposing Naver's former Chief Operating Officer Choi In-hyuk's return to the company during a rally at the company's Bundang headquarters in Seongnam, Gyeonggi Province, May 27. Courtesy of Naver Union

Seo Seung-wook, leader of Crew Union, noted that this strike marks a symbolic first step toward building a respected and fair working environment.

The experts say tech companies’ dispute with their unions comes from the long accumulation of dissatisfaction among workers.

“When we think of the IT industry, we tend to imagine a very young, free-spirited and creative workplace culture. But, in reality, there is a strong sense of hierarchy, long working hours and, on top of that, compensation that feels insufficient for the work performed,” said Lee Byoung-hoon, an emeritus professor of social sciences at Chung-Ang University. “Over time, these complaints have accumulated, and as a result, the labor union’s establishment, collective bargaining and even strikes have become inevitable.”

The Kakao union’s strike comes alongside a parallel move at Naver’s union, which has been in a standoff with management on issues over the controversial reinstatement of its former Chief Operating Officer Choi In-hyuk. Choi, who resigned to take responsibility for workplace harassment that allegedly led to an employee’s suicide, was named as the head of Naver’s tech business division last month.

In response, the company’s union will hold a third rally with over 500 union members on July 2 opposing Choi’s return. It staged the first rally at the company’s headquarters last month and issued a joint statement, followed by the second one earlier this month.

The union said the company’s decision undermines efforts to build a responsible and respectful working culture, demanding transparency and accountability.

It shared that the union-wide vote, conducted from May 22 to 26 on its 5,701 members, showed that over 98 percent of the participants opposed Choi’s return, underscoring the depth of concern among the employees.

“Does the company really believe that Choi has no responsibility for the deceased’s death?” Oh Se-yoon, head of Naver's union, said, noting that Choi repeatedly ignored employees’ concerns about the bullying incident, according to the union’s report. “The union believes that Choi bears real and direct responsibility for workplace harassment.”

Lee noted that the companies should identify the workers’ demands and stay proactive in discussing them with the union, in order to resolve the issues.

“The most important thing is to resolve dissatisfaction and distrust. It is necessary to accurately diagnose whether these issues stem from economic factors, labor environment or working conditions, or whether they arise from a lack of trust in company management,” he said.

“It is also crucial to genuinely acknowledge the labor union and to actively communicate with it, working alongside the union to understand employees’ grievances and make sincere efforts to resolve them.”